Capital Acquisitions Budget

* Avoided depreciation expenses on their garbage trucks by both assigning unsupported and inflated salvage values and extending their useful lives,

* Idle Time and Cleanup Time: Unfavourable by $3.000 + $1.600 respectively, might be due to different reasons such as low efficiency in the cleanup process, or bad shape of the machines used to manufacture the motors that turned into a lot of idle time compared to the one budgeted. The idle time must be monitored since it can lead to further decrease of Labour

2. What is the total cost? How much of the total cost are labor costs? Capital costs?

h. On July 1, 2012, the company purchased a new hauling van. Depreciation for July to December 2012 estimated to total $2,750, has not been recorded.

Calculate how much each system will cost per year and determine which of the quotes is most cost-effective.

When it comes to cost they both vary by facility size and complexity but are comparable to one another in cost. Which could average from $33,000 for three years.

A company purchases equipment costing $50 000, which it expects to last for 12 years and to have

Columbia Enterprises is studying the replacement of some equipment that originally cost $74,000. The equipment is expected to provide six more years of service if $8,700 of major repairs are performed in two years. Annual cash operating costs total $27,200. Columbia can sell

Therefore, given the effective burden rate of 145% ($4,713,982.00/3,260,015.00) we can calculate the cost of the product in table 1:

With failure costs some of the costs would be equipment break downs and spills. Our equipment costs 3 million dollars so we don’t want to replace it for at least 10 years. The routine maintenance for the equipment is $500,000 a year. The cost for the spills is a total of $120,000 a year. That includes $50,000 for the training classes on spill prevention and $70,000 for the salary of two new spill prevention workers.

Estimated machinery life: 3 years (after which there will be zero value for the equipment and no further cost savings)

The estimate of total potential market for heater/blower unit is 2737 units and 2737000 units for blankets (see exhibit 1). The direct cost of the heater/blower unit would be $380 and $0.85 per blanket. The initial investment, $500,000, for this system would cover the fixed cost of the company during first year of operation. Based on this basic information and other considerations, the company has to determine its pricing strategy for both

costs $350,000, that will have a useful life of eight years, and that will have a salvage value of $25,000. If this

ML had developed a policy of selling manual machines and renting automatic machines. Manual machines did not cost much, did not require service, and could be modified to attach different fasteners inexpensively. Automatic machines were rented on an annual basis because they would have been more expensive to sell and it provided annual income to ML. However, about 700 of the rented machines were returned each year. During the time that machines were in inventory, ML would modify the machines to attach different fasteners. This was expensive with an average cost per modification of $2000. If all 700 machines were modified during a given year this would have cost $1.4 million per year. It was also industry practice to provide preventative maintenance and

640-1 Repairs and Maintenance Expense: From $38,200 to $97,800. This is 2.56 times the value in 2011 to 2012